This study sets out to examine the effect of loan accessibility on the financial performance of SMEs in urban informal settlements in Kenya. Based on the descriptive survey design, data were collected from 120 SMEs in the 6 wards of Mathare Sub-County using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. The findings show that all the loan accessibility had a significant and positive relationship with the financial performance of SMEs. In this regard, enhancing loan accessibility contributed to the financial performance of SMEs in urban areas. Financial inclusion among SMEs in urban areas was also enhanced through mobile loans. This could go on to enhance living standards among the inhabitants of urban informal settlements as envisaged by world bank. In this regard, several recommendations were made. Mobile loan providers should market their mobile loan products to make them visible since only 4, Safaricom-Fuliza, M-Shwari, Tala, and KCB-Mpesa were the most used. Civil society organizations in collaboration with mobile loan providers should also carry out capacity building campaigns among SMEs in informal settlements. This would lead to enhanced visibility and accessibility of these mobile loans among the inhabitants of urban informal settlements.
The aim of this study is to assess the effect of interest rates on the financial performance of SMEs in urban informal settlements in Kenya. This study adopts the descriptive survey design. Data were collected from 120 SMEs in the 6 wards of Mathare Sub-County. Data was collected using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. The findings show that low-interest rates could influence the propensity of SMEs to apply for these loans. The ability to pay mobile loans without problems due to low interest rates enhanced the performance of the respondents’ businesses. This goes on to contribute to poverty alleviation in urban informal settlements through enhanced access to capital; one of the goals of the world bank. This has further ripple effects since it can contribute to income diversification for the inhabitants of poor urban areas. The following recommendations were made. The government should also reduce interest rates to lower the cost of mobile phone interests as well as the interest rates of other loan products. Mobile loan lenders should also ensure that their loan products are affordable for the urban poor.
This study explored the effect of repayment timelines on the financial performance of SMEs in urban informal settlements in Kenya. This study adopts the descriptive survey design. Data were collected from 120 SMEs in the 6 wards of Mathare Sub-County. Data was collected using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. From the study findings, it is evident that repayment timelines influenced the application for mobile loans. The ability to pay mobile loans without problems due to flexible repayment times also enhanced the performance of the respondents’ businesses. While loans with short repayment periods discouraged the businesses from borrowing due to immense pressure, long repayment periods were preferable since it meant that the stock purchased could be converted to cash. Budgeting could also be made easy due to the certainty of cash flow in long and flexible repayment periods. Lastly, a long repayment period meant that the intended use of the money borrowed could be realized. The study made the following recommendation based on the study objective. In this regard, most of the various mobile loan providers should put in place flexible repayment plans to make their loans appealing. They should also market their mobile loan products to make them visible since only 4, Safaricom-Fuliza, M-Shwari, Tala, and KCB-Mpesa were the most used. Civil society organizations in collaboration with mobile loan providers should also carry out capacity building campaigns among SMEs in informal settlements.
The aim of this research was to highlight how meritocracy can be adopted to tap youth as a resource for development in Developing countries. This meritocratic perspective is based on the premise that one's talents are primarily derived from their inherent qualities (e.g., personality and general intelligence). As a result, a meritocratic environment is described as one that recognizes an individual's abilities and provides them with the environment and, opportunities they need to excel in their endeavors. This qualitative analysis is an integrative literature review based on the desk study of secondary data. The findings show that meritocracy is achieved through, talent-based careers, educational opportunities tailored to natural aptitude, and achievement as the foundation for social reward system in the society. The practice of meritocracy may be harnessed to build up an effective work culture and promote economic growth with social development. Nevertheless, what we can conclude from this study is that non-meritocratic culture currently practiced in Developing countries, especially neopatrimonialism, is considered to play an important role in hindering youth access to opportunities. Therefore, meritocracy is a strategy that policy makers should consider adopting if they want to succeed at jumpstarting economic development based on a capitalist market model.
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